In order to sustain in the competitive business hub of Singapore, the first most requirement is to maintain reliable and high-quality financial statements. This is a necessary condition to maintain the trusted global appearance and reputation of the country.
Some recent reports reveal that several issuers in Singapore are not preparing their financial statements as per the accounting standards of the country. Therefore, it is important to pay special attention to how these incorporations can meet the compliance requirements.
If we check the Listing Rule 705(3A), effective from 12th January 2021, the issuers in the country need to follow Singapore Financial Reporting Standards to prepare their interim financial statements. The SFRS(I) 1-34 may provide detailed information about the framework so that issuers can prepare financial statements as per the international standards. However, one can also hire Singapore accounting bookkeeping service to receive relevant technical guidance about the compliance to proceed ahead safely. But make sure you review the accounting services Singapore price before hiring.
In the month of May, ISCA released Financial Reporting Guidance 3, precisely known as FRG 3, for the preparation of interim financial statements and reporting. It came along with two sets of illustrative interim financial statements for overview. These documents illustrate how specific SFRS(I) 1-34 requirements and Listing Rule Appendix 7.2 from SGX can be followed while preparing interim financial statements.
FRG 3 may help issuers to understand Listing Rule 705(3A) implications for their interim financial statements while highlighting the major areas to focus upon. Issuers in Singapore are encouraged to follow details mentioned in FRG 3 along with accompanying illustrative and guidance notes provided in Accounting Standards issued recently.
FRG 3 Preparation of Interim Financial Statements Under SFRS(I) 1-34:
FRG 3 is going to cover below areas:
Overview of regulatory changes
This section can help you understand the overview of various regulatory changes:
- Listing rule requirements before addition of Listing Rule 705(3A) on January 12th 2021.
- Issuance of SGX response paper and Listing Rule 705(3A).
Key requirements in SFRS(I) 1-34
Section 2(A) provides details about the preparation of interim financial statements as per SFRS(I) 1-34. It is important to note that a set of essential interim financial statements must comply with all requirements mentioned in SFRS(I)s.
Section 2(B) details the key requirements under SFRS(I) 1-34 as well as associated implications that must be followed by issuers. Few implications focus on the difference between current disclosure requirements listed in the Listing Rule Appendix 7.2.
Section 2(C) provides details about how issuers are needed to access relevant information about concern assumptions so that they can meet the requirements of the events and circumstances that they have experienced during the reporting period.
Key areas to work upon
This section deals with the key areas that issuers need to understand while preparing interim financial statements. Once you have gone through accounting services singapore price, it is good to check these key areas to work upon:
- Correctness of the estimates and significant judgements. It includes fair values of the investment properties, non-financial assets of the issuer, impairment losses if any, estimates about expected credit losses, and onerous contracts of the issuers.
- Non-reversal of concerned impairment loss during interim duration.
- Estimation of annual income tax rate following weighted average for entire year.
Now you have gone through the relevant details about the preparation of interim financial statements under SFRS(I) 1-34. It is the right time to hire a Singapore accounting bookkeeping service to execute the process smoothly.